Tax Law

The major agencies which collect taxes for the State of California are the FTB, EDD, and theBOE / SBE.

FTB (Franchise Tax Board)collects income taxes

EDD (Employment Development Department) collects employer taxes (and is the largest tax collection agency for California) The EDD also handles the audit and collection of payroll taxes and maintains employment records.

BOE / SBE (Board of Equalization / State Board of Equalization) collects sales tax, and administers the states use, fuel, alcohol, tobacco and other taxes, and collects fees the fund specific State problems.

Federal Taxes:

The Internal Revenue Service collects Federal Income and Employer Taxes through the IRS / Department of Treasury.

Federal and State Tax Agencies:

The State and Federal Tax agencies work together.

If the IRS determines that you owe additional tax, they will notify the state so that the state can also collect the additional tax.

The tax man is not your friend. If at all possible, have a tax professional represent you in all dealings with the taxing agency.

The IRS makes mistakes all the time. If you receive a “90-day letter”, do not delay. Go immediately to a tax attorney for advice.